Head-To-Head Review: DLocal (NASDAQ:DLO) & Nayax (NASDAQ:NYAX)

DLocal (NASDAQ:DLO) and Nayax (NASDAQ:NYAX) are both mid-cap business services companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, profitability, institutional ownership, dividends, valuation and risk.

Insider & Institutional Ownership

90.1% of DLocal shares are owned by institutional investors. Comparatively, 34.9% of Nayax shares are owned by institutional investors. 45.4% of DLocal shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility & Risk

DLocal has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Nayax has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings for DLocal and Nayax, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DLocal	0	2	6	1	2.89
Nayax	1	3	3	0	2.29

DLocal presently has a consensus price target of $16.78, suggesting a potential upside of 22.47%. Nayax has a consensus price target of $51.67, suggesting a potential downside of 28.24%. Given DLocal’s stronger consensus rating and higher possible upside, research analysts plainly believe DLocal is more favorable than Nayax.

Profitability

This table compares DLocal and Nayax’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DLocal	18.00%	40.40%	15.43%
Nayax	8.87%	11.60%	3.54%

Earnings and Valuation

This table compares DLocal and Nayax”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DLocal	$1.09 billion	3.69	$196.80 million	$0.64	21.41
Nayax	$400.43 million	6.58	$35.52 million	$0.95	75.79

DLocal has higher revenue and earnings than Nayax. DLocal is trading at a lower price-to-earnings ratio than Nayax, indicating that it is currently the more affordable of the two stocks.

Summary

DLocal beats Nayax on 12 of the 15 factors compared between the two stocks.

About DLocal

DLocal Limited operates a payment processing platform worldwide. The company offers pay-in solution which the business and get paid for their products and services through various payment methods, including international and local cards, online bank transfers and direct debit, cash, and alternative payment methods. It also provides pay-out solution used for merchants to scale pay-out operations. In addition, the company offers dLocal for Platforms, an end-to-end payment solution that offers a range of services to help platforms manage payments. It serves its products to commerce, streaming, ride-hailing, financial services, advertising, SaaS, travel, e-learning, on-demand delivery, and gaming and crypto industries. DLocal Limited was founded in 2016 and is headquartered in Montevideo, Uruguay.

About Nayax

Nayax Ltd., a fintech company, operates system and payment platform for multiple retailers in the United States, Europe, the United Kingdom, Australia, Israel, and rest of the world. The company offers AMIT 3.0, a machine-to-machine vending telemetry solution; Nayax Core, a management and monitoring software for vending machines and other unattended machines; MoMa, a mobile app for unattended machine; Tigapo back-office software suite, a cloud-based platform; EV Core, a smart, cloud-based management platform; Retail Management Cloud, a comprehensive attended retail management platform; Loyalty and Marketing Suite, a consumer engagement marketing and loyalty platform; Monyx Wallet, a digital wallet app enabling cashless payments with mobile phones; Weezmo, a consumer engagement and marketing platform; and Tigapo app, a proprietary mobile app to help family entertainment center businesses. It provides electric vehicle charging stations; VPOS Touch, a credit card reader cashless payment device; VPOS Fusion, a cashless payment card reader; ONYX, a contactless card reader and telemetry device; NOVA 156, an electronic cash register; DOT, a smart QR and barcode reader; UNO Plus and UNO 8, which are EMV and FeliCa contactless readers; EMV SOM, a PCI-PTS ready contactless EMV reader module; Nova Market, a cashless micro market and self-checkout solution; NOVA 55, an a handheld smart point of sale (POS) device; NOVA 45, a handheld mini smart terminals for attended POS; and Retail One, a universal retail solution that integrates directly with SAP. The company sells its products directly, as well as through resellers and distributors. It serves various verticals, including vending machines, coffee machines, unattended checkout counters, self-service kiosks, ticketing machines, car wash stations, gaming machines, amusement rides, laundromats, and EV charging stations. Nayax Ltd. was incorporated in 2005 and is headquartered in Herzliya, Israel.